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Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 38 percent dividend payout ratio. No external equity financing is possible. What is the fastest rate at which the company can grow if only internal financing is used? (Do not round your intermediate calculations.) HINT: You must know the difference between IGR and SGR. 3.95% 4.05% 9.93% 3.85% 2.38%
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